Is the Tech world splitting up in East and West

President Trump and the recent COVID-19 pandemic have marked a change in US-Sino relations. Over the last 20 years, because there was no better alternative than trading with China, many companies have continued their trade relations with the country and saw it as the best option, despite potential risks. However, this has now completely changed. 

Part of the discussion revolves around risks associated with technology. The US government has accused Chinese companies such as Huawei and TikTok of spying on US citizens and corporations to gather data that might hurt US business and national security interests. To counteract, the US has banned both companies from conducting business in their jurisdiction. The UK and other European nations have followed the lead. 

In China, this ban on several technology companies has caused outrage and triggered similar protectionist measurements. Additionally, western technology companies have become increasingly careful about operating in China due to concerns about intellectual property protection.

Two Technological Ecosystems

The danger of such protectionism is that two separate technological ecosystems might develop: one in the west and one in the east. These are not compatible, and the differences in technological infrastructure and regulatory requirements could make it more challenging for western and eastern businesses to trade with one another. This also means that regions like the Middle East or Africa will get caught up in between. Should they adopt the western or the eastern ecosystem? Such a technological divide would make it increasingly difficult for the world to stay interconnected. 

But getting more connected is what the world needs today. The technological connection enables trade and fosters cooperation. However, this is only possible if there are few regulatory or technological roadblocks hindering this connection. Thus, it would be in everyone's interest, especially trading businesses, if the whole world comes together and forms one technological ecosystem instead of two. 

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